The AER has determined a nominal vanilla WACC of 10.65 per cent for ElectraNet, based on the updated risk-freerate and debt risk premium, and other parameters ... Table 4.4: Parameter Risk-freerate (nominal) Risk-freerate (real) Expected ... Net adopted the risk-freerate and debt risk premium values used in the draft decision

model— pushing the average risk-freerate up. For example, taking an annual growth rate of 1:5%, and setting = 3:33 as calibrated above, would imply = 5:85%. As is well-known, this “risk-freerate puzzle” is even more severe with CRRA utility ... Another well-documented feature of the interest rate— and as it turns ... volatility of the interest rate has turned out to be quite di¢ cult to generate

Prices (CRSP). The difference between the risk-freerate and its average over the previous four quarters. The quarterly risk-freerate is approximated by the sum of the monthly risk-freerates in a quarter. "Risk-freerate" is the rate of the 3-month

Beta and the market risk premium calculations have a large effect on measuring ...risk premium can change significantly based on investors’ ever changing belief ... a stock price of CV ROIC Page 11 CV growth rates were also measured against marginal

for the risk-freerate. H7.53 H7.54 * The Ibbotson estimate for “Other” and Siegel estimates in this table are for a 10- year risk-freerate term not a 5-year term. It ... the conversion MRP = TAMRP – Rf(T), where Rf is the contemporaneous five-year risk-freerate ... of the risk-freerate Table H8 is restated to reflect a risk-freerate term of five-years

Table 3: Cost of capital for different betas under a ten year risk-freerate regime compared with a five year risk-freerate regime and being consistent between the risk-freerate used and the estimation of MRP Beta CAPM cost of capital relative ... up due to rounding) and a lower rate under the ten year regime with a beta of 1.5.

Credit spreads and RiskFreeRate :r= 5% et 6%; σ=0.20 , λ=0.20 ; ν=10 et ν=20 t ... that the credit spreads are signiﬁcant, even for short maturities and highly-rated issuers44 ... with a jump process. The ﬁrm is then exposed to a double default risk: that due